Palantir Stock Sinks 22% From Its Peak. Should You Buy, Sell, or Hold PLTR?

Core Viewpoint - Palantir's stock has experienced a significant decline of nearly 22% from its peak, raising concerns about its high valuation amidst the AI bubble [1][4] Group 1: Stock Performance - Despite the recent decline, Palantir's stock is still up approximately 112% in 2025, indicating strong overall performance [2] - The stock currently trades at a price-sales ratio of 128.8x, which is significantly higher than that of major tech companies [2][3] Group 2: Valuation Comparison - In comparison, Alphabet and Microsoft have price-sales multiples of 10.3x and 12.46x, respectively, while Nvidia's is at 33.3x, all of which are much lower than Palantir's [3] - The drastic valuation gap suggests that the market has high expectations for Palantir's future growth [4] Group 3: Growth Potential - Palantir is in a strong growth phase, driven by increasing demand for its AI Platform (AIP) [6] - The company's revenue increased by 63% year-over-year to $1.18 billion, with commercial sales rising 73% year-over-year to $548 million, surpassing government division sales for the fourth consecutive quarter [7]